Loading...
HomeMy WebLinkAbout5 Bid opening Pipe Material Agenda Item # 5b&c _ n Memorandum To: Board of Directors From: Peter Holzmeister Date: July 27, 2001 Bid openings for pipe material and installation of water pipe Items 5 (b) and (c) on the agenda deal with the purchase of water system pipe and installation of the pipe in the Southwest Gas trench at the west-end of Donner Lake. The bid openings for these items are scheduled for Monday and Tuesday respectively. We will get bid results and recommendations to you as soon as possible. Agenda Item # 5d s • • 7NN�ER istrict Memorandum To: Board of Directors From: Peter Holzmeister Date: July 27, 2001 Assessment district administrator proposal Attached for your review is a proposal from MuniFinancial to provide assessment district administration services associated with Donner Lake Assessment District 00-1. The cost of this service is $6,500 per year. Kristin Lowell recommends this firm, and I spoke recently with Sam Sperry, a bond counsel attorney we have used in the past, and he spoke highly of MuniFinancial. I have learned that the annual administration of an assessment district includes several complex processes that are best handled by a consultant who specializes in such matters. Page five of the proposal details those processes. Recommendation I recommend that the Board approve the proposal submitted by MuniFinancial dated June 14, 2001 to perform district administration services relating to Donner Lake Assessment District 00-1 PROPOSAL TO PROVIDE DISTRICT ADMINISTRATION SERVICES FOR THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT i^t JUNE 145 2001 TRUCKEE DONNER PUBLIC UTILITY DISTRICT AND MuniFinancial A WILLDAN COMPANY TABLE OF CONTENTS INTRODUCTION TO MUNIFINANC:IAL 1 Public Finance Specialization 1 A Full Year of Service 1 MuniFinancial Sets the Standards 2 Professional Involvement 3 SCOPE OF SERVICES 4 Assessment District Administration 4 FEES FOR SERVICES 5 f " Assessment District Administration 5 Expenses 5 t Insurance Information 5 KEY PERSONNEL RESUMES 6 Paul Whitelaw 6 Chris Fisher 9 Leo Itchon 11 Angel Lucero 13 SELECTED CLIENT REFERENCES 14 I ' t , t-' INTRODUCTION TO MUNIFINANCIAL MuniFinancial has the largest special district formation and administration practice in the nation. We are also known as the preeminent municipal disclosure firm as well as a major provider of arbitrage rebate sere-ices. MuniFinancial is a wholly owned subsidiary of Willdan. Willdan provides turnkey engineering and planning services, which can encompass each phase of a project. The range of services includes initial financing feasibility studies, interfacing with property owners and community groups, formation of special districts, implementation of financing programs, acquisition of needed rights-of-way, design of public improvements, administration of public works construction contracts, and ongoing administration services for special district programs. The MuniFinancial/Willdan team brings our clients truly unique qualities never before offered in the municipal finance industry. Together we bring to the Truckee Donner Public utility District all of the experience and knowledge of seasoned municipal finance experts as well as engineering experts under one roof. Public Finance Specialization following statistics demonstrate the company's experience: J g �— Special districts administered 850 _ Amount of debt administered annually Number of Districts formed/ Bond Amount 350/>S5 billion Debt issues contracted for arbitrage calculation Over 1,200 Arbitrage clients/calculations prepared since 1/1/98 Disclosure reports prepared annually Number of current clients—all services �A Full Year of Service Our success is founded upon a corporate philosophy emphasizing personalized service. MuniFinancial contracts with our clients to provide support services throughout the year — not only at the time of the initial debt offering or during the preparation of the reports. In this way, our clients can be assured that constant attention is focused on their debt issues. lYiun mancial Page t Standards�MuniFinancial Sets the MuniFinancial has numerous "firsts" associated with its history. Many of these have become standard practice within the bond administration industry due to competitive pressures.Among these firsts are: + Municipal disclosure and dissemination services + Investor relations programs + Arbitrage rebate services + Internet publishing of disclosure reports + Investment policy consulting + Bond fund balance monitoring + Full bond call coordination + Toll-free telephone number for taxpayers (English and Spanish) These "firsts" are important to our clients since they demonstrate our commitment to leading our field, rather than simply adding new services and features after our competitors do. Our clients are assured that their bond administration needs are pro- active instead of reactive. y; r i i s , f u, MuniFinancial Page 2 Professional Involvement In addition to our commitment to quality service, education, and legislative activism, MuniFinancial is highly involved in the public finance arena. Effective partnerships with our clients require that we understand the issues facing public agencies today. Our participation in professional organizations allows us to be proactive with any issue that affects the administration of special Districts. We participate in the following professional groups: + American Institute of Certified Public Accountants (AICPA) + American Planning Association (AP A) + Arizona City County Managers Association ('yCMA) + Arizona Government Finance Officers Association (AGFOA) + Association for Investment Management and Research (AIMR) + Association of Local Housing Finance Authorities (ALHFA) t California Association of School Business Officials (CASBO) California Coalition of Adequate School Housing (CASH) California Debt and Investment Advisory Commission (CDIAC) + California Downtown Association (CDA) + California Municipal Treasurer's Association (CMTA) + California Redevelopment Association (CRA) + California Society of Certified Public Accountants (CSCPA) + California Society of Municipal Analysts (CSMA) + California Society of Municipal Finance Officers (CSMFO) + California State Association. of Counties (CSAC) + Florida Association of Local Housing Finance Authorities (FALHFA) + Florida Government Finance Officers Association (FGFOA) + Florida Institute of Certified Public Accountants (FICPA) + Government Finance Officers Association (GFOA) + League of California Cities (LCC) + League of Arizona Cities and Towns + Los Angeles Society of Financial Analysts (LASFA) + Maryland Public Finance Officer's Association (MPFOA) + Missouri Municipal League (MML) + Missouri Municipal Officers Association (MMOA) + Municipal Management Association of Northern California (MMANC) + Municipal Management Association of Southern California (MMASC) + National Association of Bond Lawyers (NABL) + National Federation of Municipal Analysts (NFMA) + Northeast Florida League of Cities (NFLC) + Oregon Municipal Finance Officers Association (OMFOA) Urban Planning Institute (UPI) + Washington Finance Officers Association (WFOA) MuniFinancial Page 3 SCOPE OF SERVICES We recommend that all of our services be used for strong partnership and continuity between District staff and MuniFinancial. 'Assessment District Administration MuniFinancial will: 1. Prepare an annual report, which will include findings and recommendations, as well as a summary of significant events. The report will contain a series of schedules including district summary information; what was applied to the roll for each parcel, broken down by principal, interest and adjustments; fund analysis; delinquency summary information; value-to-lien ratios; current debt service and amortization schedules;cash flow analvsis; and bond call summary. 2. Provide assessment installment information for each parcel, formatted in the required configuration on nine-track magnetic tape or other media, to the County Auditor-Controller's Office for placement on the property tax roll. 3. Research and, if possible, resubmit installment amounts that are rejected by the County Auditor-Controller's Office. Any assessment installment that cannot be collected on the County property tax roll will be invoiced directly to the property owner of record on behalf of the District. 4. Provide a toll-free number to field inquiries from District staff, property owners, and other interested parties regarding assessment proceedings and annual installments. 5. Provide prepayment quotes of assessment wens for all interested parties upon request. Fees for this service are paid by the requesting party and may be charged to a credit card; there is no charge to property owners and/or the District. MuniFinancial will obtain recordation information for prepaid assessments and coordinate the Release of Lien. 6. Perform all required bond call spreads and coordinate the early redemption of outstanding bonds. 7. Monitor delinquent installment payments in January and May of each year and provide reports identifying all delinquent parcels and the corresponding delinquent installment amounts to the District. 8. Provide a report to the County Assessor's office each year as required by Revenue and Taxation Code 163. The report will include a listing of each active parcel contained in each assessment district, the remaining assessment amount, and the owner of each parcel based on the County Secured Roll. Additional information will be provided for parcels that paid off their assessment during the year and will include the date and amount paid, and if available the party paying off the assessment. This information will be sent electronically and in hard copy format to the County in January of each year. Mu,&im,cial Page 4 FEES FOR SERVICES The number of parcels and districts shown below are the basis of this proposal. If the actual number varies substantially,it may cause a change in our fee structure. All hourly rates, fees, and expense rates are subject to increase, not to exceed the Consumer Price Index within the applicable area. However, MuniFinancial reviews fees annually and often reduces fees after the second year of our administrative efforts. 'Assessment District Administration Truckee Donner Public Utilities 2,000 $b,500 District MuniFinancial will be reimbursed for out-of-pocket expenses, at cost. Examples of reimbursable expenses include, but are not limited to, postage, travel expenses, mileage (currently 34.5e per mile) and copying (currently 6¢ per copy). Any additional expense for reports or otherwise from outside services, will be billed to "J the District at our cost with no overhead markup. Charges for meeting and consulting with counsel, the District, or other parties regarding services not listed in the scope of work above will be at our prevailing hourly rates. Insurance Information MuniFinancial maintains standard insurance coverage by top-rated companies. Insurance certificates shall be provided to the District upon awarding of contracts. Type of Insurance Covera-C Amount 6-• Workers' Compensation Insurance $1,000,000 Professional Liability Insurance "- ■Per Claim $1,000,000 ■Aggregate $1,000,000 General Liability Insurance $1,000,000 MuniFinancial Page 5 KEY PERSONNEL RESUMES Project Management As a successful consulting firm, we understand the importance of project management and team support. MuniFinancial has successfully guided diverse consultant teams through many projects for the benefit of our clients. These projects include district formations, consolidations, annexations,workouts, refundings and other special projects. As consultants who not only perform formation services but also facilities financing planning, administration, delinquency management, disclosure services and arbitrage rebate calculations, we are able to bring a long-term perspective to the challenges facing local agency financing. Our staff of consultants, being recognized in the state as some of the most knowledgeable and capable professionals in the field of public infrastructure financing, quickly earns the respect as leaders of any team they manage. 'Paul Whitelaw Mr. Whitelaw is the Division Manager of Operations for District Administration Services with specialized expertise in the areas of 1915 Act Assessment District Administration, assessment lien apportionment and delinquency monitoring. He has specialized in the administration of Marks-Roos Pools, and has responsibility for all aspects of management of the District Administration Services Group. In this capacity, i Mr. Whitelaw oversees analysts performing annual administration of CFDs, 1972 Act and 1913 Act assessments and fee districts.These services include data research, analysis, apportionments, payoffs, delinquency management,bond calls and reports. Related Experience District Administration San Joaquin Area Flood Control Agency (SJAFCA): Mr. Whitelaw has been our lead consultant for the annual administration of both the bonded and maintenance assessment levy for this 75,000 parcel district, encompassing the City of Stockton as well as unincorporated areas of the County of San Joaquin. In this capacity, Mr. Whitelaw has been responsible for coordinating preparation of a the annual Engineer's Report for the maintenance levy for approval by the Board, quality control and review of the calculation of the annual assessments, bond fund analysis, monitoring of delinquencies and compliance with Foreclosure Covenants. San Joaquin Area Flood Control Agency (SJAFCA), Distribution of State Reimbursement Funds: Mr. Whitelaw was Project Manager responsible for assisting SJAFCA staff in the appropriate distribution of$12 Million of State Reimbursement Funds received to be used to offset the costs of the improvements constructed with bond proceeds from SJAFCA's Flood Protection Restoration Assessment District. Refund checks were prepared and mailed to approximately 20,000 property owners who had previously prepaid the MuniFinancial Page 6 assessment lien in the District,while the remaining funds were used to retire Debt for the District early. The project involved the calculation of the specific amount to be reimbursed to each eligible property owner in the District, preparation and mailing of a letter to each property owner, as well as responding to property owner questions through a toll free enquiry line. The project was successfully completed with a returned letter rate of less than 1 percent. + City of Stockton: TNIr. Whitelaw was responsible for the Project Management of the annual administration of the City's 17 active Assessment Districts. The annual effort includes the preparation of the District Administration Report for the City, appropriate recovery of administrative costs on the levy, bond fund analysis, monitoring of delinquencies, preparation of bond calls and release of liens for prepaid assessments. In addition, Mr. Whitelaw has assisted the City of Stockton in coordinating with the County of San Joaquin to streamline the process of monitoring delinquencies, and the timing of removal of delinquent assessments from the roll, in order to ensure the City comply with its bond foreclosure covenants. + City of Tracy: Mr. Whitelaw is responsible for the Project Management of the annual administration of the City's 10 active Assessment Districts. The annual effort includes the preparation of the District Administration Report for the City, appropriate recovery of administrative costs on the levy, bond fund analysis, monitoring of delinquencies, preparation of bond calls and release of liens for prepaid assessments. + City of Chico, Preparation of Surplus Fund Distribution Policy: Mr. Whitelaw assisted the City in drafting a policy to be utilized as an administrative guideline for the identification and lawful distribution of surplus funds for the { City's Assessment District. E + City of Sonora, Preparation of Bond Tender Policy: Mr. Whitelaw assisted the City of Sonora in drafting and adopting a formal policy to be adopted by City Council to serve as a policy guideline in accepting the tender of bonds to pay for annual assessments in the City's Sunrise Hills Assessment District. Delinquency Management + City of Chula Vista: Mr. Whitelaw has consulted with the City in order to produce a "Delinquency Management Procedures and Policy Document" to be used as a guideline for the City's annual monitoring of delinquencies and collection efforts. Mr. Whitelaw continues to provide assistance and advice to the City in order to ensure compliance with their Bond Foreclosure Covenants. In addition, Mr. Whitelaw oversees the process of mailing notice letters to delinquent property owners, the removal of delinquent assessments from the roll, and coordination with foreclosure counsel as the foreclosure proceedings are commenced. Apportionment Services + City of Irvine: Mr. Whitelaw oversees the administration of the annual apportionment of assessment liens for the City's Assessment Districts. The MuniFinancial Page 7 process ensures that the original purchasers of the bonds for each district are notified about the new assessment lien, and ensures that the amended Assessment Diagram and Notice of Amended Assessment Lien is recorded at the County. Currently, the City has 26 active districts, and new development has been significant, resulting in the need for a significant volume of reassessment liens to be recorded each year. During Fiscal Year 2000 over 30 separate apportionments were processed, representing the creation of over 5,000 new parcels. City of Brentwood: Mr. Whitelaw oversees the administration of the annual apportionment of assessment liens for the City's assessment Districts. The process ensures that the original purchasers of the bonds for each district are notified about the new assessment lien, and ensures that the amended Assessment Diagram and Notice of Amended Assessment Lien is recorded at the County. Currently, the City has eight active districts, and new development has been significant, resulting in the need for a significant volume of reassessment liens to be recorded each year. During Fiscal Year 2000 over 10 separate apportionments were processed, representing the creation of over 1,000 new parcels. Education Master of Business Administration, University of California, Irvine is Bachelor of Arts, Point Loma Nazarene University, San Diego Professional Affiliations California Society of Municipal Finance Officers Municipal Management Association of Southern California MuniFinancial Page 8 'Chris Fisher Mr. Fisher is a Project Manager for the Northern California region in the District Administration Services Group at MuniFinancial. He has specialized expertise in the administration of 1915 Act Assessment Districts, including: • Administration of Marks-Roos Pools • Delinquency monitoring • Preparation of Continuing Disclosure Reports to bondholders In this capacity, Mr. Fisher oversees the annual administration of Assessment Districts for Cities, Counties and Special Districts throughout California. Related Experience District Administration • City of San Bernardino: Mr. Fisher was the senior analyst and is now the Project Manager responsible for the annual administration of eight active Assessment Districts in the City, containing over 1,400 parcels. One of these eight districts was formed to repay a city loan. The annual effort includes the • preparation of the District Administration Report for the City, calculation and submittal to the County of the annual assessment levy including the appropriate recovery of administrative costs, periodic bond fund analysis, monitoring of delinquencies, preparation of bond calls and release of liens for prepaid assessments. • Calaveras County Water District: Mr. Fisher is the Project Manager responsible for the annual administration of the Water Districts' Assessment Districts. Several were formed to repay United States Department of Agriculture rural development loans. The annual effort includes preparation of the annual District Administration Report for the City, calculation and submittal to the county of the annual levy including the recovery of administrative costs, fund analysis, monitoring of delinquencies, preparation of bond calls and release of liens for prepaid assessments. Mr. Fisher is responsible for assisting the Water District in matters related to a defaulted assessment district. He provides support in the administration of the Bond Tender Policy for the district, aids in calculations related to the tender of bonds for the payment of assessments and updates the debt service schedule to account for the retirement of the bonds that have been tendered. He also oversees the Delinquency Management process for all districts, which requires a specialized approach due to the one defaulted district. MQFim,cial Page 9 • City of Half Moon Bay: Mr. Fisher is the Project Manager responsible for the administrative matters related to the Sanitary Sewer Assessment District in the City. Annual tasks include the calculation and submittal of the annual assessment levy, the preparation of the annual District Administration Report for the City, recovery of administrative costs on the levy, fund analysis, monitoring of delinquencies, preparation of bond calls and release of liens for prepaid assessments. He also assists the City- in monitoring the receipt of equalization payments from owners of property not originally included in the District, who have acquired access to the improvements financed by the proceeds from the Bonds. MuniFinancial then helps the City determine the best use of the funds received from these payments. Mr. Fisher is also responsible for the preparation of the annual Continuing Disclosure Report, which includes discussion of issues related to the passage of several anti-growth initiatives by residents of the City in recent years. Mr. Fisher has worked with City staff to ensure proper disclosure to bondholders of the potential effects of these initiatives on continuing development in the City. • City of Brentwood: Mr. Fisher is the Project Manager responsible for the complete administration for six Assessment Districts comprised of over 5,000 parcels in the rapidly growing area of Contra Costa County. One of these districts is a Marks-Roos Pool with Revenue Bonds that were issued in four separate series and four series of Local Obligations secured by five local Assessment Districts. Final build out of all of the districts will eventually exceed 10,000 parcels, with the formation of new districts expected. In addition to standard annual administrative tasks, Mr. Fisher coordinates the tracking of parcel changes and the re-apportionment of assessment liens as development continues in the districts. Five of the districts were initially comprised almost entirely of large undeveloped parcels of land, which have developed into large mixed-use projects. Throughout this process, Mr. Fisher ensured that land use changes and the status of development in the districts were tracked and accurately reported to bondholders in the annual Continuing Disclosure Reports. • City of Milpitas: Mr. Fisher is the Project Manager responsible for the annual administration of six assessment districts, comprised primarily of commercial property. One of the districts provides security for three separate series of bonds, which necessitates that it be treated essentially as three separate districts. The annual effort includes the preparation of the District Administration Report for the City, appropriate recovery of administrative costs, calculation and submittal of the levy to the Santa Clara County Auditor-Controller, bond fund analysis, monitoring of delinquencies, preparation of bond calls and release of liens for prepaid assessments. Mr. Fisher is also responsible for monitoring changes in parcel configuration in the districts and ensuring the required apportionment of assessment liens occurs. He also oversees the preparation of annual Continuing Disclosure reports for all of the districts as well as individual reports required of certain property owners who are responsible for large portions of the assessments for certain districts. When the City joined MuniFinancial as a new client, Mr. Fisher coordinated the completion of a parcel audit for the districts to properly account for current parcel configurations and lien amounts. M Financial Page 10 Delinquency Management + City of Brentwood: Mr. Fisher is the lead consultant to the City of Brentwood in the administration of its Assessment Districts, and has worked with City Staff to develop appropriate strategies related to the delinquency management process. Mr. Fisher provides assistance and advice to the City in order to ensure continuing compliance with the Bond Foreclosure Covenants for the districts, and has helped with unique approaches to specific problems, including special mailings and the development of customized delinquency notice letters. In addition, Mr. Fisher oversees the process of mailing standard notice letters to delinquent property owners, the removal of delinquent assessments from the Secured Property Tax Roll and coordination with foreclosure counsel as the foreclosure proceedings are commenced. Education Bachelor of Science,Business Administration, San Francisco State University Assessment District Financing, Fundamentals and Current Practices, University of California,Davis, University Extension Mello-Roos Financing, Fundamentals and Current Practices, University of California, Davis, University Extension Leo Itchon is Mr. Itchon is an Analyst in the District Administration Services Group at MuniFinancial. In this capacity he is responsible for day-to-day administration for Local Improvement Districts and Community Facilities Districts. Administration of these districts encompasses calculation of annual assessment levies, performance of various types of financial analysis, coordination of bond calls, monitoring delinquencies and database management. He has experience with numerous land based public finance mechanisms currently used throughout California including Local Improvement Districts, Community Facilities Districts (Mello-Roos), and Marks-Roos Pools. Mr. Itchon has four years of experience in the finance sector. Prior to joining MuniFinancial he was a stockbroker with TD Waterhouse. He also worked as an accountant with New United Motor Manufacturing and Montgomery Securities (now Bank of America Securities). His experience includes managing payables and receivables, tracking expenses and performing financial analysis. Related Experience + City of Half Moon Bay: Mx. Itchon is responsible for the day-to-day administrative matters related to the Sanitary Sewer Assessment District in the City. His annual tasks include the calculation and submittal of the annual assessment levy, the preparation of the annual District Administration Report for the City, recovery of administrative costs on the levy, fund analysis, monitoring of delinquencies, preparation of bond calls and release of liens for prepaid assessments. He also assists the Project Manager and the City in monitoring the receipt of equalization payments from owners of property not originally included MuniFinancial Page 11 I in the District,who have acquired access to the improvements financed by the proceeds from the Bonds. MuniFinancial then helps the City determine the best use of the funds received from these payments. Mr. Itchon is also responsible for the preparation of the annual Continuing Disclosure Report, which includes discussion of issues related to the passage of several anti-growth initiatives by residents of the City in recent years. Mr. Itchon has worked with City staff to ensure proper disclosure to bondholders of the potential effects of these initiatives on continuing development in the City. • City of Milpitas: Mr. Itchon is responsible for compiling data related to the annual administration of six assessment districts, comprised primarily of commercial property. One of the districts provides security for three separate series of bonds, which necessitates that it be treated essentially as three separate districts. This annual effort includes the preparation of the District Administration Report for the City, appropriate recovery of administrative costs, calculation and submittal of the levy to the Santa Clara County Auditor- Controller, bond fund analysis, monitoring of delinquencies, preparation of bond calls and release of liens for prepaid assessments. Mr. Itchon is also responsible for monitoring changes in parcel configuration in the districts and ensuring the required apportionment of assessment liens occurs. He also prepares annual Continuing Disclosure reports for all of the districts as well as individual reports required of certain property owners who are responsible for large portions of the assessments for certain districts. When the City joined MumFinancial as a new client, Mr. Itchon completed a parcel audit for the districts, properly accounting for current parcel configurations and lien amounts. • Calaveras County Water District: Mr. Itchon is involved with the annual administration of the Water Districts' Assessment Districts. This effort includes preparation of the annual District Administration Report for the City, calculation and submittal to the county of the annual levy including the recovery of administrative costs, fund analysis, monitoring of delinquencies, preparation of bond calls and the release of liens for prepaid assessments. Mr. Itchon is tasked to assist the Water District in matters related to a defaulted assessment district. He provides support in the administration of the Bond Tender Policy for the .'i district, aids in calculations related to the tender of bonds for the payment of assessments and updates the debt service schedule to account for the retirement of the bonds that have been tendered. • City of San Bernardino: Mr. Itchon was involved in the annual administration of eight active Assessment Districts in the City, containing over 1,400 parcels. His annual effort included the preparation of the District Administration Report for the City, calculation and submittal to the County of the annual assessment levy including the appropriate recovery of administrative costs, periodic bond fund analysis, monitoring of delinquencies, preparation of bond calls and release of liens for prepaid assessments. Education Bachelor of Arts,Business Economics, Accounting emphasis, University of Pittsburgh at Johnstown. MuniFinancial Page 12 Angel Lucero Ms. Lucero, Vice President of Planning and Development, consults as a Technical Advisor on various projects and directs MuniFinancial's marketing, planning and communications programs. With over 17 years of public finance consulting experience, Ms. Lucero has assisted more than 60 public agencies in financing capital improvements and ongoing maintenance. Her resume also includes the preparation of fee and rate studies and the formation and administration of over 100 local improvement districts in California,Nevada and Arizona. She currently serves as special advisor to the City of La Canada Flintridge, CA, Sewer District, where she is responsible for the Assessment Engineering, Community Relations and State loan documentation. On the client's behalf, she directed an extensive public relations program associated with funding an $8 million sewer system for 893 properties. An additional 4,000 properties will be considering sewers to replace aging septic systems. Ms. Lucero is responsible for coordinating with the City, design engineers, environmental team members and the SWRCB to obtain a low-interest rate loan from the California State Water Resources Control Board, funded by EPA. Education Bachelor of Science,Business Finance, California State University,Long Beach. l i MuniFinancial Page 13 SELECTED CLIENT REFERENCES Client relationships are extremely important to us. We encourage you to contact any or all of our clients regarding our commitment to personalized service and performance. For your convenience, a partial listing of our clients is provided below. Telephone Agency Contact Number City of West Sacramento Leigh Keichex (916) 373-5816 City of Woodland Margaret Vicars (530) 661-5830 City of Stockton Janet Salvetti (209) 937-8466 i' r-, Page 14 Agenda Item # 5e 7 TRUCKEE i DONNER Public Utility District Memorandum To: Board of Directors From: Peter Holzmeister Date: July 27, 2001 Donner Lake bridge loan By the time the Board awards contracts for purchase and installation of pipelines at the west-end of Donner take and replacement of the Devils Peak storage tank, we will have awarded Donner Lake contracts in the amount of approximately $7,000,000. We will secure a State Revolving Fund loan to cover the costs, and pay that loan with revenues from the assessment district. However, the SRF loan will not be available for cash draw for about four months. During the interim we need cash to pay the contractors. I have been talking with US Bank about a short-term bridge loan. They are willing to provide us $7,000,000 in the form of a Bond Anticipation Note, for a period of 12 months, at a variable interest rate of approximately 3.90% to 4.25%. 1 have sent US Bank documentation to describe the assessment district and the project. They will review the information and provide a specific proposal early next week. US Bank needs to be sure this loan qualifies as tax exempt, so they are asking that we provide a legal opinion from bond counsel. 1 have asked David Casnocha, the bond counsel we have been using for the past several years, to give me a proposal. If we enter into this loan arrangement with US Bank, we will be able to draw cash to pay our contractors as their progress payments come due. We will pay interest on the amount we have actually drawn. We can pay the principal on the loan at any time, which will be when we are able to draw the SRF loan. I hope to have the proposal from David Casnocha and the loan proposal from US Bank by Wednesday evening. The documents that formalize the loan would be submitted at a future Board meeting